Erie and State Farm are two popular auto insurance companies, but they have some major differences. While State Farm is a national insurer serving all 50 states, Erie is a regional company that offers coverage in only a dozen. If you live somewhere Erie is available, you’ll find that both are good options thanks to their affordable premiums and high customer satisfaction ratings.
When you’re shopping for insurance, it’s important to compare quotes, coverages, and discounts to determine which of the two companies is best for your needs.
While Erie and State Farm are both highly rated insurance companies that have some key benefits, State Farm edges out Erie because of its nationwide availability. Erie is only available in 12 states in the East Coast and Midwest regions.
But both insurers are among the best car insurance companies for affordable insurance premiums, excellent customer service, and high ratings in J.D. Power’s claims satisfaction study.1
Erie has more coverage options, which makes it an attractive option for the price.
If you live in a state where both Erie and State Farm are available, you can take into account each insurer’s coverage options and discounts — State Farm offers more — as well as get a personalized quote to help you choose the better option for you.
Erie is a regional insurance company that serves 12 states and Washington, D.C., and has high J.D. Power customer satisfaction ratings in multiple regions.2
State Farm is the largest auto insurer in the country, serving customers in all 50 states and Washington, D.C., while maintaining excellent customer service.3
Both Erie and State Farm offer telematics programs that monitor driving habits and offer benefits for good drivers.
Erie’s YourTurn program uses a smartphone app to monitor your smoothness, speed, and phone use while driving. The program aims to help drivers improve their habits behind the wheel. And when you earn a high driving score, you can collect monetary rewards that include gift cards and charitable donations.
State Farm’s program, Drive Safe & Save, also monitors your driving habits using an app. However, instead of offering rewards like Erie’s does, it offers a discount on your premiums. You’ll get a discount just for signing up, and then you can save up to 30% per year on your policy for demonstrating safe driving habits.
Erie and State Farm offer insurance premiums cheaper than the national average rates for both liability-only and full coverage. Erie has cheaper full-coverage insurance, while State Farm offers cheaper liability coverage.
Of course, each driver’s car insurance quotes depend on individual factors, and the cheapest car insurance company for someone else may not be the cheapest company for you. Factors that affect your premiums include your driving record, age, credit profile, insurance coverage needs, and more.
Your driving history plays a significant role in determining your auto insurance rates. Customers with clean driving records typically pay the lowest insurance premiums. Although their rates are comparable, State Farm has cheaper liability-only coverage than Erie.
A speeding ticket nearly always results in an insurance rate increase, as is the case with Erie and State Farm. But State Farm has cheaper average liability rates for drivers with speeding tickets.
Teen drivers often pay some of the highest insurance premiums because of their lack of experience. Erie and State Farm both have relatively affordable average liability rates for young drivers, but State Farm wins out as the cheapest car insurance company for teens.
Depending on your state, your credit history can influence your insurance premiums, and drivers with poor credit tend to pay more than drivers with good credit. State Farm has cheaper liability rates for drivers with bad credit.
Insurance premiums tend to decrease as a driver gets older but often start to increase again when a driver reaches their 70s when health issues can affect driving ability.4 State Farm’s average liability rates are cheaper than Erie’s for senior drivers.
When you’re shopping for insurance, it’s important to consider the coverage options that each insurer offers. Overall, Erie offers more coverage options than State Farm, but both insurers are missing some key coverages.
First, both Erie and State Farm offer standard coverages, such as bodily injury liability, property damage liability, personal injury protection, uninsured/underinsured motorist, comprehensive, and collision coverage. However, they differ on some additional coverage options that may be less common.
Here’s how Erie’s and State Farm’s coverages stack up to each other.
Discounts are another way to save money on your premiums. They lower your costs based on certain personal information and characteristics related to your policy, vehicle, and more.
Neither Erie nor State Farm offers as many discounts as many of their competitors, but you still have ways to save. State Farm offers 12 discounts, while Erie offers eight. Both offer popular discounts, such as one for bundling your auto insurance with other insurance products, like home insurance, renters insurance, or life insurance, and one for having certain vehicle safety features.
The table below shares a list of some of the most popular auto insurance discounts and whether these two companies offer them.
Are you considering an insurance policy from either Erie or State Farm? Here are the answers to some frequently asked questions about these two companies.
Erie can be a good auto insurer for many drivers thanks to its relatively affordable premiums and abundance of coverage options. However, like any insurance company, it’s not right for everyone, and the best car insurance policy for you depends on your unique situation, needs, and personal experience.
State Farm has several major competitors, including other top insurers with national coverage like Progressive, GEICO, and Allstate.
The best alternative to State Farm depends on what you’re looking for in an insurance policy. State Farm offers affordable premiums, nationwide coverage, and excellent customer service, but it doesn’t offer as many coverage options or discounts as some competitors. Decide what you’re looking for that State Farm doesn’t offer, and then find an insurance company that shines in that area.
One key difference between Erie and State Farm is availability. State Farm is available nationwide, while Erie is available in only 12 states. They also differ in terms of their coverage options and discounts — Erie has more coverage options, while State Farm offers more discounts.
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